Read the Original article by Dave Chase:
Summary
Amazon, like many large employers, faces rising healthcare costs, impacting both the company’s finances and employees’ pay. To address this, Amazon introduced Amazon Care, a virtual health clinic enabling Seattle employees to access telehealth services, schedule follow-ups, and arrange prescription deliveries. This model may expand to Amazon’s global customer base, leveraging the company’s experience in health tech. However, for Amazon’s telehealth model to succeed, several factors are crucial.
First, telehealth must integrate with value-based primary care, prioritizing patient-doctor time and addressing underlying health issues, not just symptoms. Telehealth should support primary care, enhancing accessibility without creating isolated services. Systems that rely solely on telehealth without a strong primary care foundation often deliver poorer results.
Second, workplace wellness programs, popular with employers hoping to cut long-term healthcare costs, often fail. Studies, like those from the Rand Corporation, indicate that these programs primarily attract already healthy employees, offering minimal cost savings. Incentives in such programs, while intended to drive employee engagement, often add up without yielding substantial benefits. Effective healthcare solutions require a focus on comprehensive care, not merely incentivizing individual health metrics.
Finally, healthcare solutions need structural changes, not quick fixes or “appified” services. Health tech startups frequently address isolated issues without impacting the broader system. Employers who self-fund medical expenses and partner with value-based primary care can achieve significant savings and better health outcomes. Companies like Amazon and Walmart are beginning to realize that redirecting healthcare spending can generate substantial savings while improving care quality.
By taking control of healthcare plans, such as by working with transparent benefits advisors and incentivizing value-based care, employers can lead a healthcare shift. Amazon’s model reflects strategies already successfully implemented by other companies, yielding 20-40% cost reductions with better outcomes. If successful, Amazon could spearhead a healthcare revolution that centers on comprehensive, tech-enhanced primary care, creating savings and high-quality outcomes for both employees and customers.
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